Primoris Services (NYSE:PRIM) Shares Up 6.6% - Here's What Happened

Key Points

• Primoris Services shares rose 6.6% to about $73.71 in midday trading, although volume was approximately 80% below the average.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating from 17 analysts and an average price target of $123.47; recent ratings ranged from Buy and Outperform to Neutral and Hold.
• The company exceeded quarterly EPS expectations but reported a 10.7% year-over-year revenue decline. Primoris also paid a quarterly dividend of $0.08 per share, while institutional investors own 91.82% of its stock.

Primoris Services Corporation (NYSE:PRIM - Get Free Report) shares shot up 6.6% on Wednesday. The stock traded as high as $73.23 and last traded at $73.7090. 288,178 shares traded hands during mid-day trading, a decline of 80% from the average daily volume of 1,408,369 shares. The stock had previously closed at $69.12.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Needham & Company LLC reduced their price objective on Primoris Services from $188.00 to $172.00 and set a "buy" rating for the company in a report on Monday, July 13th. Jefferies Financial Group restated a "buy" rating and issued a $99.00 price target on shares of Primoris Services in a research note on Thursday, October 8th. Zacks Research upgraded Primoris Services from a "strong sell" rating to a "hold" rating in a research report on Monday, August 24th. Oppenheimer assumed coverage on Primoris Services in a research note on Tuesday, July 7th. They issued an "outperform" rating and a $135.00 price target for the company. Finally, Piper Sandler initiated coverage on shares of Primoris Services in a research report on Wednesday, September 9th. They issued a "neutral" rating and a $90.00 target price for the company. Ten analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company's stock. According to data from MarketBeat.com, Primoris Services currently has a consensus rating of "Moderate Buy" and an average target price of $123.47.

Primoris Services Trading Up 5.8%

The company has a debt-to-equity ratio of 0.47, a current ratio of 1.18 and a quick ratio of 1.18. The company has a market cap of $3.94 billion, a price-to-earnings ratio of 28.74 and a beta of 1.44. The business's fifty day moving average price is $75.59 and its 200 day moving average price is $114.05.

Primoris Services (NYSE:PRIM - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported ($0.27) EPS for the quarter, topping the consensus estimate of ($0.35) by $0.08. Primoris Services had a return on equity of 9.96% and a net margin of 1.92%. The firm had revenue of $1.69 billion for the quarter, compared to the consensus estimate of $1.73 billion. During the same period in the previous year, the business earned $1.68 EPS. The business's quarterly revenue was down 10.7% compared to the same quarter last year. Research analysts anticipate that Primoris Services Corporation will post 1.77 earnings per share for the current fiscal year.

Primoris Services Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was Wednesday, September 30th. Primoris Services's dividend payout ratio is presently 12.55%.

Hedge Funds Weigh In On Primoris Services

Institutional investors have recently made changes to their positions in the stock. Bank of America Corp DE purchased a new position in Primoris Services during the second quarter valued at approximately $17,268,000. Royal Bank of Canada raised its position in shares of Primoris Services by 79.7% during the 1st quarter. Royal Bank of Canada now owns 55,614 shares of the company's stock valued at $7,955,000 after purchasing an additional 24,672 shares during the period. Kayne Anderson Capital Advisors LP bought a new stake in shares of Primoris Services during the 2nd quarter valued at $2,514,000. Raiffeisen Bank International AG lifted its stake in shares of Primoris Services by 904.8% during the 2nd quarter. Raiffeisen Bank International AG now owns 198,000 shares of the company's stock valued at $19,254,000 after buying an additional 178,294 shares in the last quarter. Finally, CI Investments Inc. purchased a new position in shares of Primoris Services during the 1st quarter valued at $5,816,000. Institutional investors and hedge funds own 91.82% of the company's stock.

About Primoris Services

Primoris Services Corporation NYSE: PRIM is a specialty contractor that provides construction, engineering, maintenance and fabrication services for critical infrastructure. The company serves customers in the energy, utilities and industrial markets, with work spanning power generation, power delivery, natural gas, renewable energy, petrochemical and industrial facilities.

Its services include utility and transmission construction, renewable energy development support, underground and overhead infrastructure, pipeline construction, facility maintenance, environmental services and specialty industrial construction.

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